Friday, March 17, 2023

How To Process Manual Credit Card Transactions

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What Is The Importance Of Pci Compliance

Process a Keyed Entry (card-not-present) Credit Card Transaction on an Ingenico iWL220 Terminal

Making sure that your company is following the guidelines set forth by the PCI SSC can help protect your business from these techniques. Payment security solutions backed by the PCI SSC, like point-to-point encryption and tokenization can actually reduce the scope of your compliance responsibility.

Data breaches can cost small businesses upwards of $25,000, which can be catastrophic for many companies. Staying up to date with PCI compliance and using the newest security measures can protect both your customers and your business, making everyone happy!


The Payment Gateway: How Credit Card Transactions Are Approved

Whichever type of service you choose, there is yet another element of card-not-present e-commerce credit card transactions you should be aware of, which is the payment gateway.

A payment gateway is a software application that communicates with the credit card company to obtain an authorization or a denial of a transaction. Think of it as a virtual credit card machine, minus the magnetic strip or chip reader. This lower level of security is one reason transaction fees for e-commerce are typically higher than for sales when the card is physically present.

The payment gateway encrypts the customers information one important aspect of the gateways functionality and forwards it to the credit card company. The credit card company checks that the consumer has the credit available, puts a hold on the funds and sends a message back that the sale has been approved. This is whats happening behind the scenes during few seconds before your customer gets that thank you for your order message on their screen.

The funds are now in the merchant account and will be moved to your account on a predetermined schedule, generally once a day. The amount of funds that find their way into your account will be diminished by various fees.

If you are using a payment service provider, you may be able to set the timeframe for transferring funds, or transfer funds to your connected bank account manually whenever you wish.

Wave/tap: Contactless Cards And Mobile Form Factors

Follow these instructions to tap or wave a contactless debit or credit card on the PAYD PIN pad’s embedded contactless reader. . ;

  • The PAYD PIN pad displays “SWIPE, TAP OR INSERT CARD”.

  • The customer taps/waves their card over the PIN Pad’s display screen.

  • Note the following :

    ;;;;;;;The PAYD PIN pad’s battery charge level should be at least 50% to ensure a successful tap.

    ;;;;;;;Only Sales and Refunds can performed as contactless transactions.

    ;;;;;;;The customer will not be prompted for a PIN.

    ;;;;;;;The transaction amount must be equal to or less than the maximum Contactless Dollar Value set for the card.

  • The PAYD PIN pad beeps and four green lights flash when the contactless reader is reading the card data.

  • ;

    Tips for proper card tap/wave:

    ;;;;;;;The card must be within 0.5 in. of the PAYD PIN pad’s display screen, but it does not have to touch it.

    ;;;;;;;The card must be tapped or waved by itself. It should not be waved while in a wallet with other cards.

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    Strong Customer Authentication And Manual Payments

    In the context of Strong Customer Authentication , card details collected over the phone or by mail do not require authentication. This type of payment is often referred to as Mail Order and Telephone Orders . If your account is in the European Economic Area , payments made by manually entering card details in the Dashboard will be automatically marked as MOTO by Stripe.

    If you need to process phone and mail payments via the API, contact us to enable this feature on your Stripe account.

    Manual Vs Electric Credit Card Processors

    How Does Credit Card Processing Work Diagram

    Many people rarely carry cash, preferring to shop using a credit or debit card. Accepting credit cards can help your small business reach more customers, no matter what sector you operate in. Most businesses use electronic credit card devices hooked to a dedicated phone line. However, old-fashioned manual credit card processing still has its advantages for some users. Other options include online credit card processing and special devices that work via smartphone.

    Also Check: How To Check Your Visa Credit Card Balance

    Creating A New Payment On The Family Ledger

    Note:;If you are using a multi-location iClassPro account, make sure that you have the location selected at the top of the page that you would like associated with this record of payment.

  • Find the family or student for whome you wish to create a payment.
  • Click the currency symbol/ledger icon;to open ledger options.
  • Click the NEW PAYMENT button.
  • Edit the Payment Title and Date if necessary.
  • Select the Payment Type you are using to collect payment.
  • Fill in the;Amount of the payment. You can either type this in manually, or there is an option to have this field auto-populate with the total of any charges with a due date on or before the current date.; Note:;You can include check numbers or additional information in the reference field . Reference notes show on the bank deposit report.
  • Check the boxes for Charges to apply the payment. If the payment is not applied, it will sit in the customer’s account as non-applied credit for future use.
  • Click Process Payment;to record the payment on the customer’s ledger.
  • How To Accept Credit Card Payments Manually

    If you run or work for a business that accepts card-not-present transactions, its important to understand the finer points of manual card processing. While its easy to simply gloss over these steps, especially when youre on the phone with a customer and want to provide a fast, positive customer experience, its both a security and financial risk to manually accept credit card payments carelessly.

    Card-not-present transactions represent the largest percentage of card fraud, and its trending up. Fraudulent e-commerce transactions are expected to reach $19 billion in 2018, with card-not-present fraud accounting for 45 percent of all U.S. credit card fraud.

    Why is this? Data breaches at Target, Home Depot and Equifax have equipped fraudsters with an almost unlimited supply of personal data. This includes credit cards that are ready to use and the cardholder information necessary to open new lines of credit.

    Simultaneously, the rollout of EMV has reduced fraudsters ability to commit fraud at the point of sale, and they have turned to card-not-present fraud to mitigate their losses. This is problematic for consumers and merchants alike.

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    How Much Do Cnp Transactions Affect My Business

    Fully grasping the nuances of credit card processing can be difficult. However, its definitely worth taking a bit of time to understand how and why card-not-present transactions are different from card-present payment processing.

    Even merchants who run brick-and-mortar shops have to deal with the cost of CNP payments occasionally. If you have a storefront shop, taking the time to train your team to understand the difference between the two types of transactions and keeping up with the latest compliant software/EMV readers will go a long way towards keeping your costs down and your payment security tighter.

    If you run an online business, your focus should be on making sure you have the appropriate security measures enabled with a good payment processor preferably one that does the bulk of the work for you!;At the end of the day, you will take the hit from chargebacks and fraud if you dont have the right protections, especially for CNP transactions where there is so much potential for for fraud.;

    Manually Enter Card Payments Without The Square Reader

    How to process a debit or credit card transaction

    If your customer or a payment card isnt present, you can manually enter your customers card information without the Square Reader on a supported mobile device, accept a payment online, or send an invoice from your online Square Dashboard or mobile device.

    Note: You are unable to manually enter payments while in Offline Mode.

    Read Also: How To Withdraw Money From Credit Card

    Safely Storing Credit Card Information

    XCharge, PayConnect, and PaySimple use tokens to safely encrypt and store credit/debit card numbers and expiration dates or checking and savings account information with PaySimple. Storing tokens is optional. When a token is saved, the card or bank account will be listed as a masked number on the window.

    Storing Tokens:

    • The card number and expiration date are stored so they do not need to be re-entered each time the card is used.
    • An entry for the card will be added to the credit card manage list in the patient’s Account Module.
    • Tokens are stored to the credit card processing program that was used to add the card or bank information. The same program will be required to process future transactions for that token. For example, a credit card was added using XCharge. The token created is unique to XCharge, and any transactions for the credit card need to be processed using XCharge.
    • If clinics are enabled, tokens are also stored to the clinic the logged-on user has selected under Clinics in the Main Menu.
    • Tokens must be stored to use CC Recurring Charges.

    If you require the card to be present for all transactions, you may prefer to not store tokens. To set the default storage option, see Account Module Preferences, Automatically store credit card tokens. You can also choose to save/not save a token when processing a single transaction .

    Understanding The Cost Of Card

    Why are you charged more for card-not-present transactions? Its pretty simple, actually. CNP transactions cost more because there are simply more ways for them to fail. From chargebacks, friendly fraud, and malicious fraud, there is more vulnerability and subsequent cost when things go wrong. ;Granted, all credit card processing poses some risk thats why businesses have contracts with processors, and why high-risk merchant accounts exist. It comes down to which methods of payment processing present the most risk.;

    With a merchant account that offers interchange-plus pricing, you will pay a higher interchange rate for card-not-present transactions because the card networks want a return in exchange for accepting some of the risk. Even third-party processors, which dont overtly pass interchange costs directly to you, still build the costs in by adding a markup to their base rate for CNP payments.

    Its also important to understand that not all card-not-present transactions pose the same risks. For instance, you are generally going to pay a higher cost for a keyed-in entry than for an online transaction because there are typically some built-in security measures for online purchases, whereas there are no security measures for keyed transactions.

    Want to know more about how credit card processing works? Check out The Complete Guide To Merchant Account & Credit Card Transaction Fees;for an in-depth look.;

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    Principles: Credit And Debit Card Payments And Processing

    1 Introduction

    Now that your merchant setup and mandatory testing is complete, you are ready to process transactions. All sales transactions begin and end with the cardholder. The cardholder presents the card as payment for goods or services in person at your POS terminal, via telephone, mail, fax, or over the internet. There are three steps that lead towards the completion of the process. Authorization and Electronic Data Capture, Funding and Settlement.

    2 Authorization and Electronic Data CaptureElectronic Data is captured by swiping the card through your POS terminal or by keying cardholders information into your POS terminal. A card holders information is made up of cardholder name, cardholder number, expiration date and counterfeit detection value. Once the data is entered into your POS terminal, it is passed on to Global Payments for authorization.

    The cardholder status is checked by the card issuer , and the requested sales amount is compared to the cardholders available spending limit.

    If the card is approved, the issuer posts the approved amount against the cardholders credit line and the card issuer provides the authorization approval. An authorization response is returned by the card issuer to the merchant through Global Payments, the processor .

    4 SettlementSettlement is the process of moving the authorized transaction from you to the cardholders financial institution.

    8 Determining Card Validity

    11 Receipting Credit Card Payments;For POS Users

    Purchase Payment Processing Equipment

    How Credit Card Processing Fees Work: The Ultimate Guide

    If youve completed all of the above steps, congrats youre ready to get a credit card reader and start taking plastic payments!

    Due to the impact of COVID-19, you should strongly consider purchasing equipment that includes a mobile credit card processing option. Unlike static credit card readers, mobile payment terminals are wireless and can be moved around the venue. This ensures your guests can pay directly at the table, which makes for less movement around your restaurant and helps promote social distancing.

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    What Fees Do You Charge Each Month

    This question is deceptively simple since some processors might provide you with a seemingly small upfront monthly fee. But be sure to dig deeper some additional fees might be hidden in the fine print. These can include fees for batch processing or fund transfers from a merchant account to your bank account, as well as statement fees. Processors might waive some of these fees to get your business, but could add them back in after a promotional period.

    What Type Of Support Is Offered

    When your payments hit a snag, will the processor be there to support you until youre back up and running? Further, an automated phone system isnt the same as speaking to a live person, so make sure to ask if they have live customer support. Low rate processing fees dont mean much if you cant reach someone to help when you need it most.

    BigCommerce Payment Processing Partners

    BigCommerce offers multiple payment gateways so you can choose which is right for your business. Learn more about the most commonly used:

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    What Is The Payment Processors Markup

    This fee goes to your payment processor for using their product, and can also be charged per transaction or on a monthly basis.

    Make sure to choose a payment provider that offers transparent fee management so you know what you sign up for.


    What Is The Importance Of Securing Your Credit Card Transactions

    How To Manually Enter Business Credit Card Transactions In QuickBooks Online

    The PCI SSC was formed by the four major card brands in 2004 due to the growing threat of payments fraud. Between 1988 and 1998, Visa and MasterCard alone lost $750 million, as a result of fraudulent activity.

    To standardize the industry, this group unveiled the PCI DSS , applicable to all businesses and organizations that accept credit card payments. This new set of credit card processing rules and regulations meant more protection for both the merchant and cardholder, with surveillance from the card brands.

    Criminals have become increasingly cunning when it comes to gaining access to cardholder information, whether it is in the e-commerce or card-present environments. These can be in the form of network intrusions, wiretapping attacks, or device tampering schemes, meaning that card information can be accessed from card readers, payment system databases, wireless or wired networks, and paper records.

    In addition, new techniques are being deployed every year. In 2020 alone, 3,932 data breaches released 37 billion private records. Compared to 2019, the number of events decreased by 48% but the total number of records compromised increased by 114%.


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    Stage : Clearing & Settlement

    In the clearing stage, the transaction is posted to both the cardholders monthly credit card billing statement and the merchants statement. It occurs simultaneously with the settlement stage.

  • At the end of each business day, the merchant sends the approved authorizations in a batch to the acquiring bank or processor.
  • The acquiring processor routes the batched information to the credit card network for settlement.
  • The credit card network forwards each approved transaction to the appropriate issuing bank.
  • Usually within 24 to 48 hours of the transaction, the issuing bank will transfer the funds less an interchange fee, which it shares with the credit card network.
  • The credit card network pays the acquiring bank and the acquiring processor their respective percentages from the remaining funds.
  • The acquiring bank credits the merchants account for cardholder purchases, less a merchant discount rate.
  • The issuing bank posts the transaction information to the cardholders account. The cardholder receives the statement and pays the bill.
  • How To Reconcile Credit Card Transactions Processed Using Roomkeypms Payments

    On each day you will need to reconcile all credit card transactions;

    • Print the batch from the Transafe portal: Go to Batched Settled Batches;and select the batch from the day you are reconciling
    • On RoomKey print the Transaction Register Balance Report for the day you are doing the report: Reports – Financial – Transaction Register Balance Summary
    • Under the Payment section of the report, the totals by payment type will be displayed. Use these totals to compare against the totals printed from you Credit Card Processor
    • If any totals are not matching on the reports, we then need to go through each transaction to see what one is missing. To do this, we could look at each of the Clerk Audits that were printed that day, or we can run the following: Reports – Financial – Transaction Register Balance – Detail – With Guest Names
    • Using this detailed view, compare the totals for the individual credit card transactions to the detailed report from the Credit Card processor. Using this method, it should be easy to identify the discrepancies between the two systems. In this example, the Credit Card processor’s pre-batch report is short in VISA by $93.53. In the PMS, we can see that there are three reservations that have a payment amount of $93.53

    To make corrections, you will need to post transactions disabling the online processing;in RoomKeyPMS.

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